New regs issued on debt and asset trade

HÀ NỘI — The Ministry of Finance has issued a directive on the financial management of the Debt and Asset Trading Corporation (DATC), which will be enforced on November 1, 2016.

The directive stipulates that DATC should maintain ownership, management and usage of procured debts and properties. Each debt procured by DATC (by agreement or appointment) is regarded as a special commodity and the company should manage and pursue it.

DATC has a right to transfer debts and properties into capital of restructured SOEs, which must be in conformity with related laws, according to the new regulations.

The use of debts and properties for capital procurement must be based on investment effectiveness approved by relevant authorities. Properties (excluding debts) should be evaluated by competent authorities in accordance with laws.

Under the new guidelines, DATC must submit semi-annual and annual reports to the finance ministry on the development of the State capital.

The use of capital is based on three principles: buying debts and properties for business activities in line with laws; supporting SOE restructuring; contributing capital for upgrading business activities. In addition, DATC must preserve and develop State capital at the company.

The corporation is not allowed to directly invest or contribute capital into real estate sector, buy shares at banks, insurance companies, stock companies.

DATC could be active in buying shares and convertible bonds at businesses where it has been a shareholder or having restructuring plans to facilitate the process. — VNS